In many cases, Chapter 7 bankruptcy is a better fit than Chapter 13 bankruptcy. For instance, Chapter 7 is quicker, many filers can keep all or most of their property, and filers don’t pay creditors through a three to five year Chapter 13 repayment plan. But not everyone qualifies to file for Chapter 7 bankruptcy and in some cases; Chapter 7 doesn’t provide the help the filer needs. Advantages of Chapter 7 BankruptcyChapter 7 bankruptcy is an efficient way to get out of debt quickly, and most people would prefer to file this chapter, if possible. Here’s how it works: Who Should File for Chapter 7 Bankruptcy?Chapter 7 works very well for many people, especially those who: You’ll take the means test to see if your income qualifies for this chapter. If your income is below the average income for a family of the same size in your state, you’ll automatically qualify. If your income is higher than the median, you’ll have another opportunity to pass. However, if after subtracting allowed expenses, including payments for child support, tax debts, secured debts (such as a mortgage or car loan), you have income left over to make a significant payment to your creditors (called disposable income more below), you won’t qualify to file for Chapter 7 bankruptcy. Chapter 7 bankruptcy isn’t the best choice for everyone. Chapter 7 won’t help people whose debts won’t get wiped out (discharged), like certain income tax debt, student loans, and domestic support obligations. High-income filers find it hard to qualify. It’s also not a good fit for people who would lose substantial equity in a home or other property if they filed for Chapter 7 bankruptcy, or those facing foreclosure or repossession. For those individuals, Chapter 13 bankruptcy would likely be a better choice. Most people prefer Chapter 7 bankruptcy because, unlike Chapter 13 bankruptcy, it doesn’t require you to repay a portion of your debt to creditors. In Chapter 13 bankruptcy, you must pay all of your disposable income the amount remaining after allowed monthly expenses to your creditors for three to five years. Disposable IncomeDisposable income is the amount that remains after subtracting allowed bankruptcy expenses from your monthly gross income. Your disposable income will determine whether you qualify to discharge (wipe out) debt in Chapter 7 or Chapter 13 bankruptcy. When you claim your deductions, you’ll be able to use the actual cost of some expenses. For others, such as the allowance for food, clothing, and housing, you’ll use the national and local standards. Here’s a list of some of the deductions you’ll be allowed to take: In a Chapter 7 case, you’ll complete the Chapter 7 Means Test Calculation form. You’ll deduct allowed expenses to find your disposable monthly income. Next, you’ll multiply that amount by 60 months. If the figure exceeds the maximum amount currently allowed (which will be listed on the form), you won’t qualify for a discharge. Additionally, you might not qualify if your disposable income is sufficient to pay 25% or more of your unsecured, nonpriority debt (such as credit card balances, medical bills, and personal loans). In a Chapter 13 matter, you’ll fill out the Chapter 13 Calculation of Your Disposable Income form. The amount that remains after deducting expenses is your monthly disposable income. You’ll pay that number to your unsecured, non-priority creditors each month over the course of your three- to five-year repayment plan. Because each case is different, determining whether you qualify for bankruptcy can be challenging. When in doubt, contact a knowledgeable bankruptcy attorney. Here are a few other things filers find challenging about Chapter 13 bankruptcy: Here are common mistakes you should avoid before filing for bankruptcy. Lying about Your AssetsChapter 7 bankruptcy includes a “means test,’’ a requirement that you disclose all of your assets and income, which determines your capacity to pay off creditors. If you purposely leave out assets or income, trying to help your qualification, your case could be dismissed. You could also be banned from filing on those debts ever again. Eventually, a bankruptcy trustee will have access to your financial records, so it’s unlikely your deception will go unnoticed. You shouldn’t try to hide any creditors, either, because credit-card companies have centralized and computerized information. They will all know you have filed for bankruptcy protection. Bottom line: Tell the truth. Not Consulting an AttorneyBankruptcy law is too complicated for the average consumer to understand. Bankruptcy attorneys know all the subtleties, which might escape uninformed people. Example: If you have a child with a part-time job while still living with you and being claimed as a dependent their earnings must be counted toward household income. Attorneys should know legal ways to protect assets that could be at risk. It might be tempting to save money in this do-it-yourself era, but it’s probably not worth the trouble or risk. Giving Assets (Or Payments) To Family MembersThis is a major red flag. You can’t give away your good stuff cash, property, cars, jewelry, electronics to friends or relatives with the understanding they will give it back later. It’s dishonest. Giving your car to a family member just before you file for bankruptcy is a clear-cut way to lose the car. If you own the car, it must be listed as an asset or if you still owe money, it must be listed as a liability. Running Up Credit Card DebtThis won’t work, either. The mentality of using your available credit before filing for bankruptcy will catch up to you. After receiving the bankruptcy notification, if the creditor believes you ran up your credit-card balance before filing, it can challenge the request to eliminate some or all of what you owe him. You could end up owing money on your credit cards, even after the bankruptcy is over. Usually, any credit purchases you make within 90 days of filing for bankruptcy are not included in the bankruptcy debts. You might have to pay your credit-card debt in full and creditors could accuse you of fraudulent borrowing. To be safe, once you choose to file bankruptcy, you should stop using the credit card. Taking on New DebtEven more than credit-card use, it’s especially irresponsible to take on new debt, especially if you tap into a home equity line. Again, the prudent course is to suspend all debt once you know bankruptcy is the step you’re going to take. Raiding the 401(k)If you think it’s good business to raid your 401(k) or IRA retirement accounts to stash away some money or pay off some creditors shortly before filing for bankruptcy, think again. First, paying off some creditors (but not others) is not allowed under the bankruptcy code because you are favoring one creditor over another. More importantly, though, your retirement accounts are exempt when filing bankruptcy so it makes no sense. IRAs, Roth IRS, SEP and Simple IRAs, Keogh plans, 401(k) accounts and pension plans are exempt, so they can’t be seized by creditors or a bankruptcy trustee. Transferring Property to Family or FriendsThis is illegal and a certain way to derail your bankruptcy efforts. You are not allowed to transfer any assets for the purpose of protecting them. Not Doing Your ResearchNot all debt is covered by bankruptcy. Student loans, tax debt, child support and alimony payments are not dischargeable. Do your research and lean on the information offered by trained professionals. Reasons to Consider Filing for BankruptcySurveys agree that job loss and medical debt are the two biggest reasons for considering bankruptcy. Many times, the two team up and light a torch to a family’s financial plans. Health problems can make it difficult or even impossible to do your job. The result is you either quit or are let go by the company. That is a toxic combination because you lose your source of income at precisely the same time expenses go up. There are some other, less imposing situations that could cause you to consider bankruptcy. You might be headed down that road if: Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
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Do You Feel Stressed About Money And Debt? How To File Bankruptcy In Utah Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post How To File Bankruptcy In Utah appeared first on Ascent Law.
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Filing a Chapter 7 Bankruptcy: Basic Steps1. Analyze Your DebtSome debts, such as child support obligations, most student loan balances, and recent tax debt, aren’t dischargeable (wiped out) in Chapter 7 bankruptcy. And if you pledged collateral for a debt (such as a house or car), the creditor can take the property if you’re not current when you file and if you don’t remain current after your case. 2. Determine Your Property ExemptionsEvery state has exemption laws, which dictate what types of property (or, in some cases, how much equity in a particular type of property) you are entitled to keep if you file for Chapter 7 bankruptcy. Most people can retain household furnishings, retirement accounts, a modest car, and some equity in a home. You’ll want to be sure that you can protect everything you want to keep before filing. 3. Make Sure You Are EligibleMost people must take and pass the means test before qualifying for a discharge in Chapter 7 bankruptcy (excluded individuals include those with primarily business debt and some military personnel). If your average gross income during the six months before you file is more than the median income for a family of your size in your state, you qualify. If not, you’ll subtract allowed expenses from your income to determine whether you’ll be allowed to use Chapter 7 bankruptcy. 4. Redeem Or Reaffirm Secured DebtsIf you pledged property as collateral for a loan, you’ll need to continue to pay the creditor if you want to keep the property. When you file for bankruptcy, you’ll be asked to decide whether you want to “redeem” the property (pay the creditor the current replacement value of the property in a lump sum), “reaffirm” the debt (agree to continue paying per the contract with the creditor usually under the same terms), or “surrender” the property (let the creditor take it). Depending on where you live, there might be other options as well (some lenders let debtors keep the property as long as they remain current on the loan). 5. Fill Out The Bankruptcy FormsYou’ll complete a few dozen pages of forms, in which you tell the court about all of your property, debts, income, expenses, and prior transactions. You’ll list the names of all your creditors, property, and income, list your property exemptions, and decide what you want to do about each of your secured debts. Finally, you’ll disclose property transactions that occurred up to ten years before your case. 6. Take A Credit Counseling CourseIndividuals who file for bankruptcy must complete a course before filing for bankruptcy, or, in unusual cases, shortly after that. 7. File The FormsFiling your petition (the main bankruptcy form, schedules, and other forms) officially starts your case. Most people file all the forms at once, but if you’re pressed for time, you can opt for an emergency filing by completing a few required forms. You must file the remaining forms within 14 days. 8. Pay The Filing Fee Or Request A Fee WaiverYou’ll pay a filing fee when you file your forms. If you can’t pay it all at once, you can ask the court to split it into four payments. If you can’t pay it at all, you can apply for a fee waiver by filling out an application that you’ll file along with your bankruptcy petition. A judge will review it and, in most cases, issue the fee waiver if it appears that you meet all necessary qualifications. (Your household income must be 150% of the federal poverty guidelines or less, and you can’t have sufficient income to pay in installment payments.) 9. Submit Documents To The Bankruptcy TrusteeYou’ll need to turn over documents that prove the accuracy of the information provided in your bankruptcy forms. You can expect to forward bank statements, paycheck stubs, profit and loss statements, tax returns and other documents the trustee requires. 10. Go To A MeetingIn most cases, you’ll need to go to court only once for a short meeting with the trustee (and perhaps a creditor or two, although it’s unusual for creditors to appear). The bankruptcy trustee appointed to your case will check your identification, and ask standard questions required of all debtors, as well as specific questions about the information in your forms. 11. File Objections Or Motions If NeededIf you dispute a creditor’s claim against you or you want to eliminate certain liens, you’ll need to address these matters before your bankruptcy case is closed (if you forget to handle a lien, most courts will allow you to reopen the case at a later date). 12. Wind Up Your Secured DebtsWhen you filed your bankruptcy forms, you’ll complete a form in which you stated how you intend to handle your secured debts. Before your case is closed, you’ll need to act on these matters. For instance, if you indicated that you’d return a car, you’ll want to be sure to make it available to the lender. 13. Complete A Debtor Education CourseAfter you file your paperwork, you’ll need to complete the second course, called a debtor education course, before you’ll receive a discharge (the order that wipes out your debt). If you fail to submit your certificate on time, the court will close your matter without a discharge. Fixing this problem can be expensive because you’ll likely have to file a motion and another filing fee to reopen the case. 14. Get Your DischargeCongratulations! This is what it’s all about. At the end of a successful bankruptcy, the court will issue an order discharging your quest. Chapter 13 BankruptcyChapter 13 is a Section of the Bankruptcy Code which enables qualified individuals and small business owners to retain their assets and consolidate all or a portion of their debt under a Chapter 13 Plan payable over three to five years. The Debtors and their attorneys formulate the repayment play. The Debtor must make a single monthly plan payment to the bankruptcy trustee throughout the duration of the plan, and the bankruptcy trustee distributes the plan payment among all of the Debtor’s Creditors in amounts and priorities specified in the plan. (Certain obligations including long-term secured liabilities such as home mortgages may or must be paid outside of the plan.) • Amount Of Plan Payment – The amount of the plan payment is an amount equal to all of the surplus income of the Debtor and the Debtor’s spouse. Surplus income is all income received by the Debtor and his or her spouse that is not reasonably necessary for the support of the Debtor and the Debtor’s dependents. If your current budget shows you can afford to pay more than that amount, the Trustee in your case will seek to have your payment amount increased (if you are paying less than 100% of your unsecured debts through the plan). Benefits Of Filing Chapter 13 In UtahMany interesting and valuable options are available to Debtors in Chapter 13 cases that are not optional in Chapter 7 cases. • Stop A Foreclosure Sale And Catch Up On Your Home Mortgage – For example, if you are behind on your home mortgage, arrears can be cured within the Chapter 13 Plan over a period of 3-5 years. Chapter 13 Vs. Chapter 7One purpose of a chapter 13, as opposed to a chapter 7, is to enable a debtor to retain certain assets (for example, your home or other real estate) that might otherwise be liquidated by a chapter 7 Trustee. It also provides an alternative to Chapter 7 when you have too much disposable income (your net monthly income exceeds your net monthly expenses by too much) and usually yields much lower monthly payments than you were previously paying and after 36-60 months, you are done! Your debts are gone. It also enables you sometimes to discharge debts that would not be discharged in the Chapter 7, such as parking tickets, non-criminal fines, and debts incurred through willful and malicious injury to another. The goal of most personal bankruptcy is to discharge your existing debts by repaying all or a portion of your debts and allow you a fresh start on your finances. In other words, once your discharge is granted, you no longer need to repay the debts that were incurred before you filed your bankruptcy. Assuming you need to file a bankruptcy, the only way to determine which Chapter to file under is to first compare your options under the other available Chapters and be sure you have consulted with an experienced bankruptcy attorney to properly analyze your options. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Do I Need A Foreclosure Attorney Or Not Do You Feel Stressed About Money And Debt? Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post How To File Bankruptcy In Utah appeared first on Ascent Law. Bankruptcy is a life-changing experience, but if you want it to be a positive one, it’s best to know what not to do before filing. Too many consumers attempt to skirt bankruptcy laws by trying to hide or give away assets that should be part of their filing. Bankruptcy courts don’t take kindly to that. It’s the job of a bankruptcy trustee to be sure all assets are reported and accounted for and while that may take a while, it’s really hard to hide something and get away with it. The penalties for that include dismissal of your petition for bankruptcy and could include criminal charges punishable by up to $500,000 in fines and five years of jail time. People are sometimes desperate and looking for an edge, seeking assurances they will qualify for bankruptcy. That leads to errors. Common Mistakes You Should Avoid Before Filing For Bankruptcy. Lying about Your AssetsChapter 7 bankruptcy includes a “means test,’’ a requirement that you disclose all of your assets and income, which determines your capacity to pay off creditors. If you purposely leave out assets or income, trying to help your qualification, your case could be dismissed. You could also be banned from filing on those debts ever again. Eventually, a bankruptcy trustee will have access to your financial records, so it’s unlikely your deception will go unnoticed. You shouldn’t try to hide any creditors, either, because credit-card companies have centralized and computerized information. They will all know you have filed for bankruptcy protection. Not Consulting an AttorneyBankruptcy law is too complicated for the average consumer to understand. Bankruptcy attorneys know all the subtleties, which might escape uninformed people. Example: If you have a child with a part-time job while still living with you and being claimed as a dependent their earnings must be counted toward household income. Attorneys should know legal ways to protect assets that could be at risk. It might be tempting to save money in this do-it-yourself era, but it’s probably not worth the trouble or risk. An attorney can help you determine which bankruptcy is best for you: Chapter 7 or Chapter 13. Giving Assets (Or Payments) To Family MembersThis is a major red flag. You can’t give away your good stuff cash, property, cars, jewelry, electronics to friends or relatives with the understanding they will give it back later. It’s dishonest. Giving your car to a family member just before you file for bankruptcy is a clear-cut way to lose the car. If you own the car, it must be listed as an asset or if you still owe money, it must be listed as a liability. If you want to keep your car after filing for bankruptcy, there are strategies in place to help you do that. Running Up Credit Card DebtThis won’t work, either. The mentality of using your available credit before filing for bankruptcy will catch up to you. After receiving the bankruptcy notification, if the creditor believes you ran up your credit-card balance before filing, it can challenge the request to eliminate some or all of what you owe him. You could end up owing money on your credit cards, even after the bankruptcy is over. Usually, any credit purchases you make within 90 days of filing for bankruptcy are not included in the bankruptcy debts. You might have to pay your credit-card debt in full and creditors could accuse you of fraudulent borrowing. To be safe, once you choose to file bankruptcy, you should stop using the credit card. Taking on New DebtEven more than credit-card use, it’s especially irresponsible to take on new debt, especially if you tap into a home equity line. Again, the prudent course is to suspend all debt once you know bankruptcy is the step you’re going to take. Raiding The 401(k)If you think it’s good business to raid your 401(k) or IRA retirement accounts to stash away some money or pay off some creditors shortly before filing for bankruptcy, think again. First, paying off some creditors (but not others) is not allowed under the bankruptcy code because you are favoring one creditor over another. More importantly, though, your retirement accounts are exempt when filing bankruptcy so it makes no sense. IRAs, Roth IRS, SEP and Simple IRAs, Keogh plans, 401(k) accounts and pension plans are exempt, so they can’t be seized by creditors or a bankruptcy trustee. Transferring Property to Family or FriendsThis is illegal and a certain way to derail your bankruptcy efforts. You are not allowed to transfer any assets for the purpose of protecting them. Look into other ways in which you can keep your house in bankruptcy. Not Doing Your ResearchNot all debt is covered by bankruptcy. Student loans, tax debt, child support and alimony payments are not dischargeable. Do your research and lean on the information offered by trained professionals if you are unsure how to file for bankruptcy or if you should file for bankruptcy. Exempt vs. Non-exempt Property Under Chapter 7When a person files for bankruptcy protection, they can expect to have to turn over a sizeable portion of their property to a so-called bankruptcy estate. A bankruptcy trustee manages this bankruptcy estate, selling the property to raise money to pay off a debtor’s creditors. However, a bankruptcy debtor does not necessarily have to turn over everything to the bankruptcy estate. In a Chapter 7 liquidation case, the debtor has to turn certain property over to the bankruptcy trustee. Debtors, whether they are businesses or individuals, are often justifiably concerned about what property they will be allowed to keep and what they must give up. How Exemption WorksBankruptcy law allows debtors to keep a certain amount of property after going through bankruptcy proceedings. This is called “exempt” property it is exempt from the bankruptcy estate. Property that cannot be exempted is, appropriately, called “non-exempt” property. Generally, a bankruptcy debtor can exempt a certain amount of his or her property during bankruptcy. If done right, this can potentially save most of the property of someone going through bankruptcy. Property that is exempt can generally be called the “necessities of modern life.” This generally includes the sort of items that are necessary for living and working. Bankruptcy law is concerned about getting debtors out of crushing debt and putting them back on their feet. Taking everything from them is counterproductive, and bankruptcy law recognizes this fact. Non-exempt property generally covers items that fall outside of the necessities for living and working. Court rulings and general practice experience have established a general idea of what types of property are exempt and non-exempt. Below are examples of property that a Chapter 7 debtor will usually have to give up (“non-exempt” property), and property that the debtor may usually keep (“exempt” property). Property That Is Not ExemptItems that the debtor usually has to give up include: Property That Is ExemptExempt property (items that a debtor may usually keep) can include: Will Filing for Bankruptcy Help Eliminate Your Debts?It is important to understand that there are different forms of debts and, under law; there are specific types of debts that cannot be discharged through bankruptcy. These non-dischargeable debts include some tax debts, domestic support obligations such as child support and alimony, debts incurred through fraudulent acts, debts arising from criminal behavior, like drunk driving, and student loans. Factors That Will Help You Decide When To File BankruptcyWhen to file bankruptcy is one of the most important decisions that you have to make in your financial life. Remember, when you should file for bankruptcy largely depends on your circumstances aside from the types of debt that you have incurred. Below is a discussion of the factors to consider when filing for bankruptcy: When To File Chapter 7 and Chapter 13 BankruptcyBankruptcy is a viable option for you no matter how high or low your debts are. Although the bankruptcy court does not have an outline regarding the minimum debt threshold, there are certain requirements that you need to meet in order to qualify. If you do not qualify for any of the Chapter 7 requirements, you can opt for a Chapter 13 bankruptcy, which will still allow you to discharge some or all of your unsecured debt and, at the same time, receive protection from the court and keep your assets. So, even if there is no way to discharge your non-dischargeable debts, you can pay them off with this type of bankruptcy by discharging other debt to free up cash and creating a manageable, court protected repayment plan for non-dischargeable debts. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Do I Need A Foreclosure Attorney Or Not Do You Feel Stressed About Money And Debt? Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Filing For Bankruptcy In Utah appeared first on Ascent Law. There are plenty of reasons to downsize to a smaller home. Perhaps the kids are grown, and you’ve suddenly found yourself an empty-nester. Or maybe you’re sick of maintaining a yard and paying expensive utility bills. Whatever the reason for downsizing, we know that moving to a less spacious home comes with a myriad of benefits. Your time, money and energy much of which was once directed at a large home can now be spent on other more important things, such as your family, work and hobbies. In addition, downsizing may help you meet your financial goals. Whether it’s retiring early or saving for the future, moving to a more affordable home will only expedite the process. Here are things to consider when downsizing to a smaller home. Available AmenitiesWhen downsizing, it’s important think about what amenities (if any) are important to you. For instance, if you’re moving from a house to an apartment, will you miss a private outdoor space? What about a pool or other recreational activities? Downsizing shouldn’t mean compromising your quality of life. So be sure that your new home whether it’s a new apartment or a new neighborhood has the amenities you want. In addition, having less space inside your home may make you want to get outside more. Make sure there’s plenty to do near your new home. Having recreational amenities, such as a club house or tennis courts, will give you a sense of community as well. Close Proximity To NeighborsSpeaking of the need for community, how close do you want to be to new neighbors? In many areas, downsizing to a smaller home may mean opting for an apartment or condo. These buildings tend to have people living in close proximity to one another. For instance, an apartment building may have anywhere from two to 100 or more apartments under one roof. Before committing to a smaller home, be sure to ask yourself whether you’re willing to live close to others. If the answer is no, then you’ll need to opt for a single-family home over an apartment or condo. Home Office NeedsNot everyone needs a home office, but if you plan to work, you’ll likely need some sort of desk set-up in the new home. Configuring a home office in a small home can be tricky. So, if you need a private room for an office, make sure the new home has enough space to meet your work needs. If not, you should consider either: looking at other homes or renting a shared co working space. The Number Of People In Your HouseholdHow many people are living with you? The answer to this will determine how small you can really go. After all, squeezing a family of four into a one-bedroom home won’t be easy. If you plan to downsize with your partner and kids, make sure you’ve worked out the bedroom situation. For instance, will the kids share bedrooms and bathrooms? Is there a play space for young children? If you’re moving by yourself, then there will be less considerations to make regarding space. Your Need For Personal SpaceHow much personal space do you need? Are you comfortable living in a remote location or do you prefer to be near other people? While one person may need a private bedroom, bathroom and TV area, another may not need any personal space at all. In addition, while some people may be fine living in an apartment building with other people, others may prefer to live in a rural environment far away from others. Make sure to determine your personal space needs before downsizing. Those moving with other people, such as a partner or kids, may need more personal space than someone moving by themselves. Future VisitorsHow many guests do you expect to have? When downsizing to a smaller home, it’s important to think about the number of guests you expect to have and how often you expect to host them. Is it possible for guests to find a hotel room or nearby rental home? Do you want guests to come stay with you? If you’re moving to a resort town or vacation area, be aware that you may end up having more guests than you think. If you do need a guest room, be sure to factor this into your downsizing decision. Your Storage NeedsWhen downsizing to a smaller home, it’s important to think about your storage needs. Will you need a self-storage unit? Do you plan to donate, sell or toss your belongings? Does the new home come with a garage, attic or other space for storage? Will it cost money to store your things? Asking all of these questions should help you determine your individual storage needs. Your Financial GoalsDoes downsizing help you meet your financial goals? For many homeowners, saving money is one of the most important incentives for downsizing to a smaller home. Retirees looking to make their dollars go further, families saving money for college funds and individuals looking for ways to save for retirement will all benefit from downsizing to a less expensive home. After all, paying for a large home can wreak havoc on a bank account. From expensive utility bills and maintenance costs to high monthly mortgage payments and insurance costs, taking care of more space often costs more money. The Size Of Your FurnitureHow large is your furniture? Will it fit in the new, smaller home? Be sure to consider whether or not you will need to buy all new furnishings to accommodate the size of your new home. Many small apartments and tiny houses require smaller furniture. For instance, there may not be a designated dining room in the new home. Instead, you may just have a small breakfast area. If this is the case, then you will likely need to replace your old furniture with smaller pieces that fit the space. Your Future PlansFinally, consider your future. Do you plan to retire and grow old in this smaller home? If so, make sure it’s set up to accommodate the needs of someone who is older. For instance, a two or three-story home with steep stairs is not ideal for an older person with mobility issues. Opting for an apartment building with an elevator or a one-story home is a smarter investment. If you don’t plan on downsizing for very long, then features, such as stairs, aren’t as important. Pros: You Can Make Money Selling Your StuffDuring the course of a month, the Munsons underwent a massive purge. Munson’s wife set up an auction page online and sold both their TVs, as well as all the paintings and wall decor that filled their entire home. To get rid of stuff quicker, they offered many items in bulk. For instance, they sold two large bags of men’s clothes and a pair of shoes for $150. They raked in a grand total of $19,000 from sales. Whatever went unsold, they donated to the Salvation Army and got a tax write-off. Con: Purging Can Be ExhaustingWhile you can make money from selling unwanted items during your move, the process of getting rid of your stuff can also be time-consuming and exhausting. When I downsized from a 500-square-foot apartment to a 300-square-foot one, I spent two weeks frantically getting rid of stuff I didn’t need or couldn’t fit into my new place. Taking inventory of my stuff and deliberating over whether I should keep or donate was a major brain drain. Pro: Live in a More Desirable NeighborhoodAs smaller homes usually cost less, moving into a smaller place could provide homeowners with an opportunity to live in a neighborhood or area that might otherwise not be affordable if they stayed in a larger home. Pro: Fewer Costs and Less UpkeepIf you’re selling a larger home and buying a smaller one that costs less, you could pocket the profits. Plus, you can expect to spend less on utilities. The Munsons used to spend an average of $850 a month for utilities, and now only spend about $350 a month. Plus, they have water well, which cuts down on the water bill. They also dropped their cable and Netflix subscriptions and got rid of their TVs. Con: The Costs of MovingThen there are the actual costs of moving. While you could offset the costs by selling unwanted belongings and saving in housing, you’ll need to factor in hiring movers, and spending time purging and packing. If you’re selling your home and buying a smaller one, there’s the process of putting your home on the market, real estate commission and other fees. Con: Less SpaceWhile this is an obvious downside, you’ll have less space to work with. You need to be extra careful with what you decide to purchase. Living in small quarters means constantly making a series of trade-offs. While I’ve managed to barely fit a small drum set and an electric keyboard, I’ve had to say no to purchasing a guitar and had to get rid of piles of clothes. And depending on your needs and how much you’ll be downsizing, this could be logistically challenging or impactful in ways that extend beyond simply where to put all your stuff, points out Lerner. For instance, you might have less privacy. “There is a little less of it, especially when the kids have their friends over to spend the night. We can hear a lot more around the house when we’re sleeping than before since we’re not separated with hallways. Re-Evaluate What’s Important to YouDownsizing to a smaller house can also provide an opportunity for one to better assess and hone in on what is important to them. Whether that means determining which features in the house itself are must-haves in expense of others. Or it could also mean divesting themselves, in a Marie Kondo-like purge, of a lot of their accumulated possessions which may be weighing them down in ways that may not register until after the fact. Case in point: While Munson really misses having a specific place to store just-in-case tools and other items he only needs once or twice a year, he’s sure that if he and his family had moved into another large home, they would’ve filled it right back up with stuff. “But since we moved into a smaller space, it has forced us to think through what we really need.” “Now when we consider getting something, we need to get rid of something else to have room.” Know Your WhyAs it goes with most major decisions, get to the bottom of why you want to downsize in the first place. Do you want to pay less in housing, or live in a better neighborhood? Or maybe you just want less upkeep, or to live a minimalist lifestyle. For the Munsons, they’ve found that spending less time on cleaning and the upkeep of their home has fostered more quality time and brought them closer as a family. We spend more time together as a family, and find that we go outside a whole lot more. I only get one chance at raising my kids and so I am going to err on the side of relationship and spend more time with them than less. Do a Test RunIf you’re not sure how you’ll do in a smaller space, finding an Airbnb rental that’s similarly sized to the houses you’re looking at. Then book a stay for about a week to get a better sense of what it actually feels like to live in that kind of space. While it might sound good in theory, it might not be practical, says Lerner. If that’s the case, you’ll need to revise your search and try to find a house that’s slightly larger. If you’re mulling over the possibility of downsizing to a smaller home, you’ll want to look at both the advantages as well as the downsides. In turn, it’ll help you gauge whether this major move is the right one for you and your family. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Cheap Bankruptcy Lawyers In Utah Do I Need A Foreclosure Attorney Or Not Do You Feel Stressed About Money And Debt? Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Essential Downsizing Tips appeared first on Ascent Law. Feeling overwhelmed by money worries? Whatever your circumstances, there are ways to get through these tough economic times, ease stress and anxiety, and regain control of your finances. If you’re worried about money, you’re not alone. Many of us, from all over the world and from all walks of life, have to deal with financial stress and uncertainty at this difficult time. Whether your problems stem from a loss of work, escalating debt, unexpected expenses, or a combination of factors, financial worry is one of the most common stressors in modern life. Even before the global coronavirus pandemic and resulting economic fallout, an American Psychological Association (APA) study found that 72% of Americans feel stressed about money at least some of the time. The recent economic difficulties mean that even more of us are now facing financial struggles and hardship. Like any source of overwhelming stress, financial problems can take a huge toll on your mental and physical health, your relationships, and your overall quality of life. Feeling beaten down by money worries can adversely impact your sleep, self-esteem, and energy levels. It can leave you feeling angry, ashamed, or fearful, fuel tension and arguments with those closest to you, exacerbate pain and mood swings, and even increase your risk of depression and anxiety. You may resort to unhealthy coping mechanisms, such as drinking, abusing drugs, or gambling to try to escape your worries. In the worst circumstances, financial stress can even prompt suicidal thoughts or actions. But no matter how hopeless your situation seems, there is help available. By tackling your money problems head on, you can find a way through the financial quagmire, ease your stress levels, and regain control of your finances and your life. Financial stress is emotional tension that is specifically related to money. Anyone can experience financial stress, but financial stress may occur more often in households with low incomes. Stress can result from not making enough money to meet your needs such as paying rent, paying the bills, and buying groceries. People with less income might experience additional stress due to their jobs. Their jobs might lack flexibility when it comes to taking time off. They might work in unsafe environments, but they are afraid to leave because they won’t be able to support themselves financially while they look for another job. Most people stress about money from time to time. But financial stress can become problematic if it disrupts your everyday life. For instance, you might find you can’t focus on or enjoy other parts of your life because your money-related stress is causing you to worry so much. If your financial stress is severe, you will experience negative effects on your mental health and potentially even your physical health. Financial stress can lead to anxiety, depression, behavioral changes like withdrawing from social activities, or physical symptoms like stomachaches or headaches. Effects Of Financial Stress On Your HealthWhile we all know deep down there are many more important things in life than money, when you’re struggling financially fear and stress can take over your world. It can damage your self-esteem, make you feel flawed, and fill you with a sense of despair. When financial stress becomes overwhelming, your mind, body, and social life can pay a heavy price. Financial stress can lead to: A number of studies have demonstrated a cyclical link between financial worries and mental health problems such as depression, anxiety, and substance abuse. 1. Financial problems adversely impact your mental health. The stress of debt or other financial issues leaves you feeling depressed or anxious. No matter how bleak your situation may seem at the moment, there is a way out. These strategies can help you to break the cycle, ease the stress of money problems, and find stability again. Dealing with financial stress tip 1: Talk to someoneWhen you’re facing money problems, there’s often a strong temptation to bottle everything up and try to go it alone. Many of us even consider money a taboo subject, one not to be discussed with others. You may feel awkward about disclosing the amount you earn or spend, feel shame about any financial mistakes you’ve made, or embarrassed about not being able to provide for your family. But bottling things up will only make your financial stress worse. In the current economy, where many people are struggling through no fault of their own, you’ll likely find others are far more understanding of your problems. Not only is talking face-to-face with a trusted friend or loved one a proven means of stress relief, but speaking openly about your financial problems can also help you put things in perspective. Keeping money worries to yourself only amplifies them until they seem insurmountable. The simple act of expressing your problems to someone you trust can make them seem far less intimidating. • The person you talk to doesn’t have to be able to fix your problems or offer financial help. Getting professional adviceDepending on where you live, there are a number of organizations that offer free counseling on dealing with financial problems, whether it’s managing debt, creating and sticking to a budget, finding work, communicating with creditors, or claiming benefits or financial assistance. Whether or not you have a friend or loved one to talk to for emotional support, getting practical advice from an expert is always a good idea. Reaching out is not a sign of weakness and it doesn’t mean that you’ve somehow failed as a provider, parent, or spouse. It just means that you’re wise enough to recognize your financial situation is causing you stress and needs addressing. Opening up to your familyFinancial problems tend to impact the whole family and enlisting your loved ones’ support can be crucial in turning things around. Even if you take pride in being self-sufficient, keep your family up to date on your financial situation and how they can help you save money. Let them express their concerns. Your loved ones are probably worried—about both you and the financial stability of your family unit. Listen to their concerns and allow them to offer suggestions on how to resolve the financial problems you’re facing. Make time for (inexpensive) family fun. Set aside regular time where you can enjoy each other’s company, let off steam, and forget about your financial worries. Walking in the park, playing games, or exercising together doesn’t have to cost money but it can help ease stress and keep the whole family positive. Tip 2: Take Inventory Of Your FinancesIf you’re struggling to make ends meet, you may think you can ease your stress by leaving bills unopened, avoiding phone calls from creditors, or ignoring bank and credit card statements. But denying the reality of your situation will only make things worse in the long run. The first step to devising a plan to solve your money problems is to detail your income, debt, and spending over the course of at least one month. Keep track of all your spending. When you’re faced with a pile of past-due bills and mounting debt, buying a coffee on the way to work may seem like an irrelevant expense. But seemingly small expenses can mount up over time, so keep track of everything. Understanding exactly how you spend your money is key to budgeting and devising a plan to address your financial problems. List your debts. Include past-due bills, late fees, and list minimum payments due as well as any money you owe to family or friends. Identify spending patterns and triggers. Does boredom or a stressful day at work cause you to head to the mall or start online shopping? When the kids are acting out, do you keep them quiet with expensive restaurant or takeout meals, rather than cooking at home? Once you’re aware of your triggers you can find healthier ways of coping with them than resorting to “retail therapy”. Look to make small changes. Spending money on things like a morning newspaper, lunchtime sandwich, or break-time cigarettes can add up to a significant monthly outlay. While it may be unreasonable to deny yourself every small pleasure, cutting down on nonessential spending and finding small ways to reduce your daily expenditure can really help to free up extra cash to pay off bills. Eliminate impulse spending. Ever seen something online or in a shop window that you just had to buy? Impulsive buying can wreck your budget and max out your credit cards. To break the habit, try making a rule that you’ll wait a week before making any new purchase. Go easy on yourself. As you review your debt and spending habits, remember that anyone can get into financial difficulties, especially at times like this. Don’t use this as an excuse to punish yourself for any perceived financial mistakes. Give yourself a break and focus on the aspects you can control as you look to move forward. Tip 3: Make a plan—and stick to itJust as financial stress can be caused by a wide range of different money problems, so there are an equally wide range of possible solutions. The plan to address your specific problem could be to live within a tighter budget, lower the interest rate on your credit card debt, curb your online spending, seek government benefits, declare bankruptcy, or to find a new job or additional source of income. If you’ve taken inventory of your financial situation, eliminated discretionary and impulse spending, and your outgoings still exceed your income, there are essentially three choices open to you: increase your income, lower your spending, or both. How you go about achieving any of those goals will require making a plan and following through on it. • Identify your financial problem. Having taken inventory, you should be able to clearly identify the financial problem you’re facing. It may be that you have too much credit card debt, not enough income, or you overspend on unnecessary purchases when you feel stressed or anxious. Or perhaps, it’s a combination of problems. Make a separate plan for each one. Tip 4: Create a monthly budgetWhatever your plan to relieve your financial problems, setting and following a monthly budget can help keep you on track and regain your sense of control. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Cheap Bankruptcy Lawyers In Utah Do I Need A Foreclosure Attorney Or Not Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Do You Feel Stressed About Money And Debt? appeared first on Ascent Law. Regardless of the reason a homeowner slides into foreclosure, the lender is taking the property in a process that can leave the homeowner unrepresented by an attorney without leverage. Foreclosure can take place non-judicially without the courts or judicially using the courts. Whether it’s non-judicial or judicial, if you’re under foreclosure, you might require the services of a lawyer, depending on your particular circumstance. Consulting an AttorneyIt’s always wise to seek legal advice if your lender is foreclosing your property, even if you’re not contesting the foreclosure. Consulting with an attorney about your foreclosure will give you valuable insight into it and any potential post-foreclosure debt issues. However, speaking to an attorney and getting general legal advice about your foreclosure isn’t the same as actively engaging one to deal with it. Generally, your need for an attorney to deal with a foreclosure comes down to deciding if you’re going to contest it. Types of ForeclosureThe type of foreclosure you’re experiencing along with any decision to contest it usually determines your need for a lawyer. In states such as Utah, the majority of foreclosures are carried out non-judicially and don’t even involve the courts. If you want to fight your non-judicial foreclosure, you’ll first need to file a lawsuit just to bring it into a court having jurisdiction. A skilled attorney can also definitely help in contesting or even just delaying your judicial foreclosure. Pro Se RepresentationIf you’ve decided to fight your foreclosure, you are of course, free to represent yourself in court. Going to court without the aid of an attorney is common in the American legal system and is known as “pro se” representation. Many homeowners contesting their foreclosures have represented themselves pro se, especially when they’re financially strapped. If you don’t have significant time or energy to devote to fighting your foreclosure, though, it’s usually best to retain an attorney. Delaying a ForeclosureAn entire industry specializing in helping homeowners delay their foreclosures, sometimes for years, has sprung up since the 2007 housing market crash. Most foreclosure delay services use some form of attorney or legal aid to help clients delay their foreclosures. Foreclosure and BankruptcyYou may not need an attorney to deal with your foreclosure if you’re filing for Chapter 7 liquidation bankruptcy. For one, the automatic stay issued when you file for Chapter 7 or Chapter 13 reorganization bankruptcy temporarily delays foreclosure. Typically, foreclosure is delayed by one to two months during a bankruptcy unless the court lifts the stay. Also, if you’re using an attorney to file for bankruptcy, you can obtain any needed foreclosure advice from that attorney. Statutory Redemption MeanStatutory redemption is a law that permits the original owner of a foreclosed property to regain ownership of that property after it has been foreclosed upon. Such laws provide homeowners an opportunity to redeem their property if they are able to pay the amount that the property was sold for at the foreclosure sale and can do so before the time limit expires (usually up to one year). However, statutory redemption laws are only recognized in a handful of states. The majority of states usually follow the equitable right to redemption guidelines, which allows it before the foreclosure sale occurs. Thus, both the original owner of a foreclosed property as well as a prospective buyer should review these laws before moving forward with any legal processes and may also want to retain legal counsel to ensure that they understand the consequences. Foreclosed properties are typically sold “as is.” This means that a buyer of a foreclosed property will typically have little to no legal means of recourse if they discover that the property will need more work than they originally imagined. In which case, it is not entirely necessary for a buyer to obtain a lawyer before purchasing a foreclosed property. However, if the purchase occurred during the pre-foreclosure stage and the seller made material misrepresentations about the property, then there is a possibility that the buyer will have a chance to recover any losses they might have suffered due to the seller’s misrepresentations. For instance, if the seller did not have a right to sell the property and engaged in serious efforts to prevent the buyer from discovering that fact. Thus, if you should find yourself in such a situation, then it may be in your best interest to consider hiring a local foreclosure lawyer for further assistance. In such a scenario, an experienced foreclosure lawyer will be able to help you build a case against the seller as well as inform you of the types of remedies you may be able to recover. When You Should Hire a Foreclosure AttorneyBelow are some situations where you should consider hiring, or at least consulting with, an attorney. You Have a Defense and Want to Keep Your HomeIf you think you have a defense to the foreclosure, and you want to keep your home, you’ll likely need a skilled attorney to help. Some defenses that probably require the aid of an attorney include the following: Each foreclosure defense is different, and every situation has complicated nuances that can ultimately make or break the case. And, you’ll have to raise your defense in court. You’ll need to file your own lawsuit if the foreclosure is non-judicial or respond to the foreclosure lawsuit in a judicial foreclosure. Either way, the process involves making a legal argument, filing documents with the court, following rules of evidence, and more. A foreclosure lawyer can help you formulate your arguments, navigate the rules of the court, and submit the appropriate paperwork. It’s unlikely that a homeowner could mount a successful defense to foreclosure without an attorney. You’re in the MilitaryActive military service members have special protections against foreclosure, as well as certain rights, under the Service members Civil Relief Act (SCRA). The SCRA is extensive and complex. If you’re a military service member, an attorney can inform you about all of your rights under the SCRA and help ensure that the servicer complies with this law. The Servicer Is Dual TrackingIf you’ve applied for loss mitigation and the servicer is dual tracking (foreclosing while an application for a foreclosure alternative is pending), you’ll want to deal with this legal violation immediately before a sale happens. It’s very difficult to get your home back after a foreclosure. Having an attorney on your side gives you a better chance of getting results before a sale takes place. It’s a good idea to learn each step in the foreclosure process in your state. That way, you won’t be caught off guard at any point. If you’ve done your homework on the topic but still have questions, an attorney is an excellent resource. While you can apply for a modification on your own, in some instances say you need help understanding your legal rights or the servicer violates the law; hiring an attorney just might make the difference between getting your mortgage modified and losing your home to foreclosure. When You Probably Don’t Need to Hire a Foreclosure LawyerYou probably don’t need to hire an attorney if your goal is simply to live in the property throughout the foreclosure process. You legally own your home up until the new owner who buys it at the foreclosure sale gets title to the property. You usually can remain in the home until this time. If your state’s laws provide a post-sale right of redemption, you might be able to stay in the property through the redemption period or until some other action, such as ratification of the sale, occurs. You Want to Get Some Extra Time to Live in the HomeIf your primary goal is to get a little more time to live in the home before the foreclosure is final, you can submit a loss mitigation application to the servicer. Federal law (and some state laws) prohibits dual tracking. So, you can live in the home for a while longer while the servicer reviews your application. In most cases, you’ll also get some time to appeal the decision. You might even get a loan modification that makes your monthly payment more affordable or another alternative to foreclosure. But be aware that if the servicer already evaluated a loss mitigation application from you, you can’t submit another application just to stall the foreclosure. However, under federal law, if you’ve brought your loan current at any time since submitting a complete loss mitigation application, and the servicer reviewed that application, the servicer has to perform another review if you apply again. Most people don’t need a lawyer’s help in preparing a loss mitigation application. To get free assistance, contact a HUD-approved housing counselor. If you don’t have a valid defense to the foreclosure; say you stopped making your payments, have no intention of resuming them, and think the servicer has treated you fairly then there’s probably no reason to hire or consult with an attorney. You Can’t Afford Your Home and You Don’t Want to Keep ItLikewise, if you can’t afford your house payments and don’t want to keep your home, it might be a waste of time, effort, and money to hire an attorney to fight or try to delay the foreclosure. Instead, you can put that money towards finding somewhere else to live. If You Decide to Hire a LawyerIf you decide to hire an attorney to represent you, it’s a good idea to speak to several different lawyers to get more than one perspective and learn about all available options. If you can’t afford to hire a lawyer to represent you throughout the entire process, consider scheduling a consultation with one to help you decide what to do, as well as to explain your legal rights and responsibilities. If you can’t afford even one consultation with an attorney, a legal aid office might be able to help you for free if you meet certain criteria. Stages of ForeclosureThe exact foreclosure process is different in each state, but generally, you can expect it to look something like this: Default and Notice of DefaultThe first thing that happens in the foreclosure process is that you enter into default. “Default” essentially means you’re late on your mortgage payments; what most lenders refer to as being delinquent. The law dictates that a lender must reach out to a borrower once he or she is 36 days behind on mortgage payments. By 45 days, the lender must provide written notice of the default, including details about any loss mitigation or repayment options the borrower may be able to use. A borrower has to be at least 120 days behind on his or her mortgage for the lender to start the foreclosure process legally. Foreclosure Filing and TrialIf you’re in a judicial foreclosure state, the next step is the foreclosure filing. The lender will file a foreclosure lawsuit against the borrower, also called a “complaint.” In some states, lenders need to prove that they offered the borrower loss-mitigation options before filing suit. The foreclosure suit will go before the court, and borrowers have a right to contest their foreclosure and raise their defenses. If the court rules in favor of the lender, the property can be scheduled for sale. Notice of ForeclosureIn non-judicial foreclosure states, there is no trial. Lenders simply issue a “notice of intent to foreclose,” alerting the borrower that the foreclosure process has begun. They will also need to advertise the sale usually in a newspaper, for at least a few weeks before the scheduled sale date. The property’s actual selling is done via auction, and usually by the local sheriff’s department. In many cases, banks and lenders are forced to purchase the properties back due to a lack of buyer interest. These are then dubbed “bank-owned properties” or “real estate-owned properties” (REOs), and the lender then makes efforts to sell those directly to a buyer. Many banks and larger financial institutions list their REO properties somewhere on their website. EvictionOnce a foreclosed property has been sold, the former homeowner must vacate the premises. If he or she doesn’t, the new buyer legally can have them evicted from the home. The exact process for getting someone evicted varies by state. Parties Involved in a Home LoanThe key parties involved in most home loan transactions and foreclosures are: Judicial Foreclosures Go Through CourtIn a judicial foreclosure, an attorney files a lawsuit on behalf of the lender or investor in court to foreclose the home. You’ll receive a copy of the complaint, sometimes called a petition, which starts the foreclosure. You then get a certain number of days, like 30, to respond to the lawsuit. If you don’t file an answer in court (or if you file a response, but the court decides the foreclosure should go ahead), the court will grant a judgment of foreclosure in favor of the foreclosing party and set a sale date. The foreclosure sale is typically an auction where the public, as well as the foreclosing party, may bid on the property. The highest bidder becomes the new owner of the home. Non-judicial Foreclosures Generally Don’t Involve Any Court ActionAll states allow judicial foreclosures, but about half also permit non-judicial or “power of sale” foreclosures. In a non-judicial foreclosure, an attorney or trustee (again, on behalf of the lender or investor) completes certain out-of-court steps. Typically, a non-judicial foreclosure involves one or more of the following steps, depending on state law: Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Can You Sell A Home In Foreclosure? Cheap Bankruptcy Lawyers In Utah Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Do I Need A Foreclosure Attorney Or Not? appeared first on Ascent Law. Bankruptcy laws focus on helping individuals solve and repay their debts after they have suffered heavy losses. It is common to hear that a person in a bad financial situation may declare bankruptcy. Bankruptcy law is not always the first career path that law students think of, but it can be quite exciting and fulfilling. Federal bankruptcy laws, which govern nearly all bankruptcy proceedings, are statutory laws outlined in Title 11 of the United States Code. Because one code governs all bankruptcy proceedings in the country, this area of law tends to be very uniform and precise. In fact, many bankruptcy attorneys find this area of practice enjoyable for that very reason often the answer they are searching for is outlined directly in the code itself. In particular, there are three common types of bankruptcy proceedings. Chapter 7 of the Code applies to individual petitions, while Chapter 11 proceedings are filed by businesses. Finally, Chapter 13 proceedings govern wage earners; petitions under this chapter ask the court for more time to allow a debtor to pay off his or her debts while earning a steady income. What Do Bankruptcy Lawyers Do?Bankruptcy lawyers may work on behalf of debtors (the individuals or businesses who owe the debt) or creditors (the individuals or entities to whom a debt is owed). In a bankruptcy proceeding, the ultimate goal is to benefit both the debtor and the creditors, by allowing creditors to become satisfied while still allowing debtors a fresh start financially. Bankruptcy lawyers on both sides of the equation work to facilitate this goal. On a typical day, a lawyer working on a bankruptcy case may draft motions and proceedings to be filed in court, as well as draft responses to motions and other filings. Bankruptcy lawyers engage in and review discovery documents, and hold meetings with clients and adversaries to discuss how best to move forward. Motions filed in bankruptcy cases will be set to be heard by the court, and lawyers will have to be prepared to argue them. However, junior attorneys in bankruptcy firms may not always get to court to argue these motions which practice is often left up to the more experienced attorneys. Because of the variety of tasks performed by a bankruptcy lawyer, a variety of skills are needed as well. Bankruptcy lawyers must have a strong understanding of the Bankruptcy Code, as well as excellent legal research and writing skills. Lawyers in this field must be prepared to communicate with clients, as well as negotiate with adversaries in pending proceedings, so strong “people skills” are a must. Finally, litigation skills are a necessity, even though newer attorneys may not argue in court right off the bat. Bankruptcy lawyers should be ready to argue motions filed in court at any time; a full understanding of the filings involved, as well as well-practiced speaking skills, are a must in this field. Bankruptcy law is a growing field right now, so this is a good time for law students to look for careers in this area of law. Many firms offer a bankruptcy practice, which typically involve a heavy workload. Students interested in working in this field should look to apply to both small and large firms with an active bankruptcy practice. While in law school, most students will have the opportunity to take a course in bankruptcy law. This is, of course, the best way to learn more about the field and the laws involved in bankruptcy proceedings. Students interested in this area of practice should look out for a bankruptcy or similar course being offered by their school. However, bankruptcy itself is not the only useful class for future bankruptcy lawyers. The following classes will all help to hone the skills and knowledge necessary for those who wish to work in the bankruptcy field: Bankruptcy is a growing area of the law offering more and more career opportunities for new lawyers. While attorneys in this field must utilize a variety of different skills each day, law students can start preparing early for a career in this fast-paced environment. Attorneys in bankruptcy enjoy the field because the laws are straightforward and the objective is to satisfy everyone involved in the proceedings. What Are The Downsides Of Declaring Personal Bankruptcy?1. Not all debts will disappear. Some debts, like child support payments or money owed to a victim in a criminal case, will still be your responsibility even if you declare bankruptcy. Corporate BankruptcyCorporations that file for bankruptcy cannot continue to operate. Essentially, bankruptcy serves as an end to the life of a company. There are a variety of reasons for why a company might need to file for bankruptcy. Often, economic factors have a sudden and dramatic effect on receivables. If a corporation doesn’t have a sufficient buffer for operating costs, even reducing staff and other expenses can’t be done in time. Corporate bankruptcy involves more players than an individual filing. Often shareholders, employees, investors and lenders are all affected. For example, employees may wonder if they need to come into work while bankruptcy proceedings are in progress or how they will be paid. Working with a comprehensive legal team that specializes in business bankruptcy ensures that the rights of all affected parties are considered. Creditor RightsAn attorney represents creditors seeking repayment on loans from an insolvent or bankrupt individual or corporation. Even before bankruptcy occurs, creditors have legal recourse to collect on unpaid debts. Our lawyers can help with the following collections processes: Whether you are a secured or unsecured creditor, our experienced team provides timely legal advice to ensure loans are repaid. Get in touch with us today to speak with a qualified creditor’s rights lawyer. Licensed Insolvency TrusteesMany corporations and individuals facing bankruptcy will work with insolvency trustees to help them navigate the legal proceedings. While an individual or corporation can file for bankruptcy without consulting a lawyer, in order to file for bankruptcy you need to consult a licensed insolvency trustee. If you’re thinking about hiring a lawyer to file a bankruptcy petition and represent you, you’ll have to pay attorneys’ fees. Most bankruptcy lawyers charge a flat fee for a simple bankruptcy; others charge an hourly fee. When you pay attorneys’ fees will depend, in large part, on whether you file for Chapter 7 bankruptcy or Chapter 13 bankruptcy. Flat Fees Versus Hourly FeesMany attorneys, especially bankruptcy attorneys, will charge a “flat rate” to represent you in a bankruptcy case. You’ll pay a fixed amount for the attorney to represent you, regardless of the amount of time the attorney spends on your case. Other attorneys will charge you an hourly rate, although it’s uncommon in consumer bankruptcy cases. The more likely scenario is for the attorney to charge a flat fee for the bulk of the matter. The lawyer will charge an hourly fee for any extra work required for services like defending against an objection to discharge. Your contract should spell out what the flat fee covers. Average Chapter 7 Bankruptcy Attorney FeesMost Chapter 7 bankruptcy attorneys will base their fees on how complicated your case is and what other attorneys in the area would charge for a similar bankruptcy. If you have a lot of assets or debt, you might pay more than an unemployed person with no assets. In general, attorney fees for a Chapter 7 bankruptcy range from $1,000 to $3,500 depending on the complexity of the case. Larger firms with more advertising and overhead costs sometimes charge more than a solo practitioner, but not always. Some larger operations offer low fees and count on a higher volume of cases. Also, you might find a solo practitioner will cost more but offer more personalized service. It will depend on the office. You can expect a newer attorney to charge less than a more experienced lawyer, and if your case is a simple Chapter 7, you might not need an attorney with years of experience. Keep in mind, however, that bankruptcy is a specialized area of law and that most attorneys who don’t regularly practice bankruptcy won’t accept a bankruptcy case. When shopping around for a bankruptcy lawyer, call at least a few attorneys in your area. Compare their fees and ask if bankruptcy is an area they specialize in, as well as the number of cases they file each month. Paying a Chapter 7 AttorneyYou’ll pay your Chapter 7 attorneys’ fees in full before the attorney files the case and with good reason. Chapter 7 wipes out most unsecured debt in a Chapter 7 case, including attorneys’ fees. So if you had a balance due when filing the matter, it would get discharged. Chapter 7 attorneys know this, of course, and require full payment. Average Chapter 13 Bankruptcy Attorney FeesMost courts have guideline “acceptable” fees for a Chapter 13 bankruptcy. Unless exceptional circumstances justify it, an attorney won’t be allowed to charge more than the court’s guideline fee. Chapter 13 guideline fees are different for each judicial district. However, they are typically between $2,500 and $6,000 depending on the complexity of the case. For instance, if you own a business, the case will likely require more work and justify a higher fee. Paying a Chapter 13 AttorneyFortunately, most attorneys don’t require you to pay the entire Chapter 13 bankruptcy fee upfront. In most cases, attorneys will ask for a portion of their fees before filing your matter, and the remainder will get paid through your Chapter 13 repayment plan. How much a bankruptcy lawyer will require before filing will depend on each attorney or firm. But on average, you can expect to pay about half of the total fee before the attorney files your case. Lawyers Must Disclose Attorneys’ Fees to the CourtAttorneys’ fees in bankruptcy cases are somewhat unusual in that they must be disclosed to and approved by the court. However, this doesn’t mean that the bankruptcy court fixes the amount that attorneys can charge in bankruptcy cases. Attorneys are free to charge what is reasonable given their experience and the complexity of your case subject to review by the court. Some courts have a “presumptive” maximum fee for certain types of bankruptcy cases, but the attorney can overcome the ceiling by demonstrating a good reason for charging more. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Can You Legally Sell Your Rental Property With Tenants In It? Can You Sell A Home In Foreclosure Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Cheap Bankruptcy Lawyers In Utah appeared first on Ascent Law. Many people think of bankruptcy court as the final stop on a path to financial ruin, the only option left when repaying debts seems impossible. But there’s hope even in bankruptcy, and Chapter 13 of the federal bankruptcy code offers the closest thing to a soft landing. Chapter 13 allows those with enough income to repay all or part of their debts as an alternative to liquidation. It’s bankruptcy for those whose biggest problem is dealing with creditors’ demands for immediate payment, not lack of income. One of its most attractive features is the chance to keep your home after Chapter 13 bankruptcy as long as you can pay the mortgage and any amount required by your Chapter 13 repayment plan. Under Chapter 13, people have three to five years to resolve their debts while applying all their disposable income to debt reduction. The option allows applicants to eliminate unsecured debts while catching up on missed mortgage payments. Short-circuiting home foreclosure is one of the option’s most attractive features. Though keeping your home can be a major relief, you’re required to spend years living under the supervision of a court-appointed trustee who will collect and distribute your payments. How Chapter 13 WorksChapter 13 bankruptcy is like Chapter 11, which generally applies to businesses. In both cases, the petitioner submits a reorganization plan that safeguards assets against repossession or foreclosure and typically requests forgiveness of other debts. They both differ from the more extreme Chapter 7 filing, which liquidates all assets except those specifically protected. No bankruptcy filing eliminates all debts. Child support and alimony payments aren’t dischargeable, nor are most student loans and some types of taxes. But bankruptcy can clear away many other debts, though it will likely make it harder for the debtor to borrow in the future. To be eligible to file for Chapter 13 bankruptcy, an individual must have no more than $419,275 in unsecured debt, such as credit card bills or personal loans. They also can have no more than $1,257,850 in secured debts, which includes mortgages and car loans. These figures adjust periodically to reflect changes in the consumer price index. One of Chapter 13 allows you to stop an effort to foreclose on your home. Filing a Chapter 13 petition suspends any current foreclosure proceedings and payment of any other debts owed. This buys time while the court considers the plan, but it does not eliminate the debt. Hopefully, the bankruptcy plan will free enough of your income that you’ll be able to make regular mortgage payments and keep your house. The Chapter 13 ProcessFirst, you should find a bankruptcy lawyer who can provide you with a free evaluation and estimate to file. The cost to file Chapter 13 bankruptcy consists of filing fees and fees charged by a bankruptcy attorney. Petitioners (or “debtors”) need to pay a $313 filing fee to the bankruptcy court. They also need to provide: Chapter 13 petitioners must stipulate that they haven’t had a bankruptcy petition dismissed in the 180 days before filing due to their unwillingness to appear in court. Also, anyone seeking bankruptcy protection must undergo credit counseling from an approved agency within 180 days of filing a petition. Shortly after filing bankruptcy, the debtor also must propose a repayment plan. A bankruptcy judge or administrator will hold a hearing to determine whether the plan meets the requirements of the bankruptcy code and is fair. Creditors may raise objections to the plan, but the court has the final say. Debtors can arrange to make up delinquent payments over time, but under Chapter 13 rules, all new mortgage payments from the time of filing must be made on time. The debtor also must work with a trustee, who distributes payments to the creditors. The debtor is not required to have any direct contact with his or her creditors under Chapter 13. In fact, all creditors are required by law to cease any attempts to recover the debts covered under the Chapter 13 process if all terms of the agreement are being met. You must stick to the basics of your Chapter 13 repayment plan. If you make late payments or miss payments, the trustee may move to dismiss your case. In some cases, you may be allowed to accelerate your payments and seek an early discharge from the agreement. Conversely, if your financial situation worsens, it’s up to you to inform the bankruptcy trustee and seek a modification of the plan, if necessary. Failure to comply with the terms, especially failure to make payments on time, could result in your Chapter 13 case being dismissed. Meeting QualificationsBusinesses, such as corporations and LLCs, cannot file Chapter 13. The bankruptcy code also prohibits stockbrokers and commodity brokers from filing under Chapter 13, even if their debts are personal. Individuals who can demonstrate they have the means to pay regular monthly payments are eligible to file. They must disclose their sources of income and submit the information to the court within 14 days of filing a petition. Income can come from a variety of sources, including pension income, Social Security payments, unemployment compensation, royalties and rent and proceeds from a property sale. You also need to be current in you tax filings. You are required to submit proof that you filed state and federal tax returns for the past four years. If you can’t do this, your case can be delayed until you can, and will be dismissed if you are unable to produce or offer transcripts of your returns. The trustee will review the debts and income statements, and then schedule a hearing to decide whether the plan is acceptable. When the repayments are completed, the Chapter 13 case will be discharged. This typically takes three to five years. Typical Chapter 13 Bankruptcy CaseWhat does a successful Chapter 13 bankruptcy applicant look like?Consider Steven and Cathy, a married couple with a home that carriers a $150,000 mortgage. Steven works, Cathy doesn’t, but they file jointly for Chapter 13 protection. The couple also owes $7,000 on a car loan and has nearly $20,000 in credit card debt. Two weeks after filing a petition, they submit a Chapter 13 repayment plan that shows how Steven’s income can be used to make mortgage and car payments, and can repay part of the unsecured credit card debt. Their plan includes three categories of debt: priority, secured and unsecured. Priority claims, which must be fully paid, include the cost of the bankruptcy proceeding, some taxes and child support. Secured debts are those with collateral, like a house or a car, also must be paid in full (unless an exception applies) according to the bankruptcy plan. Repayment of unsecured debts, like money you owe on credit and charge cards, is flexible. The judge will review your income and the length of the repayment plan, and then decide how much you’ll owe your unsecured creditors. The amount could range from nothing to complete repayment. For Steven and Cathy, this means paying all the court costs and whatever back taxes they might owe. It also means they will become current on their mortgage and car payments. But the judge will decide how much they’ll need to pay the credit card companies. Once their plan is accepted, the couple will begin making payments to a court-appointed trustee who will be responsible for monitoring their progress and conveying the money to the creditors. Chapter 7 vs. Chapter 13Chapter 7 bankruptcy forces you to liquidate a great many assets to repay creditors. But the process can be concluded relatively quickly, and any wages and property you acquire after the bankruptcy filing, except inheritances, aren’t subject to distribution to your creditors. Typically, the entire process is completed within six months. But Chapter 7 has disadvantages, too. Lenders who have already filed to foreclose on your home are only temporarily stalled, and other debts such as mortgage liens can be collected after the case is concluded. Cosigners on your debt are still obligated to pay. In addition, you have to meet the Chapter 7 income limit to qualify. Seeking Chapter 13 protection allows you to keep all your property. It simply extends the amount of time you have to repay what you owe after the bankruptcy court issues its ruling. It is possible to file a Chapter 13 bankruptcy after a Chapter 7 is completed, allowing you to seek a reduction in whatever debts remain from a Chapter 7 discharge. Chapter 13 also protects your loan cosigners against collection efforts if the bankruptcy settlement obligates you to repay the debt yourself. If you need to file a second bankruptcy, Chapter 13 is only a two year waiting period versus eight years for Chapter 7. There are disadvantages to Chapter 13 bankruptcy as well. Legal fees can be higher in Chapter 13 cases than Chapter 7 cases and your obligation to repay can last for years. In Chapter 7, the Chapter 7 discharge ends most debt obligations. Life after Chapter 13 BankruptcyOnce the court approves a repayment plan, it is up to the debtor to make the budget plan work. Failure to make agreed-upon payments will bring the matter back to court for further review, which could include selling the debtor’s property to pay debts. Alternatively, the trustee can simply request the case be dismissed. Bankruptcy may give debtors a breather from creditors, but there is a penalty to be paid on their credit reports. Under the federal Fair Credit Reporting Act, a Chapter 13 bankruptcy will be listed on the report for seven years. Debtors in this situation may find it difficult to get additional credit for years. Chapter 13 bankruptcy can be a useful financial tool for people with serious debts who worry about losing their homes to bankruptcy. Anyone considering this course should consult a bankruptcy lawyer. Before Filing a Bankruptcy PetitionThough bankruptcy filings are sometimes the best way to resolve debts, they are not the only alternative. Before deciding if you should file for bankruptcy, consider steps to resolve your debt. Then speak with an attorney to determine if bankruptcy is right for you. Each of these alternatives has its own set of pros and cons and only an attorney can advise you as to the best course of action in your particular case. • Credit Counseling – Seek help from a nonprofit credit counselor. Churches, charitable organizations and government agencies might provide counseling without charge, or they can refer you to a counselor. The goal is to review your finances and suggest solutions for your debt. Chapter 13 EligibilityChapter 13 bankruptcy isn’t for everyone. Here are a few requirements you should know upfront. • Debt limits: Secured debts and unsecured debts cannot exceed certain amounts. (Find the figures in What Are Chapter 13 Bankruptcy Debt Limitations?) A “secured debt” gives a creditor the right to take property (such as your house or car) if you don’t pay the debt. An “unsecured debt” (such as a credit card or medical bill) doesn’t give the creditor this right. If your total debt burden is too high, you’ll be ineligible, but you can file an individual Chapter 11 bankruptcy, instead. Bankruptcy is a federal court process designed to eliminate debts or repay them under the protection of the bankruptcy court. For individuals, most people file either Chapter 7 or Chapter 13, because a court order can call an automatic stay, prohibiting most creditors from hounding you in order to collect what you owe. However, you should consider the costs, both financially and personally, before taking action. If you declare bankruptcy, renting an apartment or buying a house or a car will be extremely difficult because of your credit. In addition, future job opportunities could be compromised, perhaps leading to more financial issues. Many debtors assume that Chapter 7 bankruptcy is better than Chapter 13 bankruptcy because, Chapter 13 bankruptcy requires debtors to repay some debt, whereas Chapter 7 bankruptcy wipes out qualifying debt without a repayment plan. But it isn’t that simple. For instance, Chapter 7 is quicker, many filers can keep all or most of their property, and filers don’t pay creditors through a three to five years Chapter 13 repayment plan. But not everyone qualifies to file for Chapter 7 bankruptcy and in some cases; Chapter 7 doesn’t provide the help the filer needs. Each bankruptcy chapter has unique tools that help solve distinct problems. For instance, a debtor who’d like to save a home from foreclosure will likely be better off filing for Chapter 13 bankruptcy because Chapter 7 bankruptcy doesn’t have a mechanism that will allow you to keep property when you’ve fallen behind on your payment. However, sometimes Chapter 13 bankruptcy is the only option because a debtor isn’t eligible for Chapter 7 bankruptcy. Some debtors cannot file for Chapter 7 bankruptcy leaving Chapter 13 bankruptcy as the only option. You cannot file for Chapter 7 bankruptcy if both of the following are true: • Your current monthly income over the six months before your filing date is more than the median income for a household of your size in your state. How the Automatic Stay WorksThe automatic stay is an order that’s put in place as soon as you file for bankruptcy. All collection efforts to collect money you owe other than child support and alimony, including calls, letters, and other techniques, must come to an immediate halt. It stops almost anyone who is trying to collect from you. In most cases, the automatic stay will protect you throughout your case. But not always. If you’ve filed more than one bankruptcy case within a year, you might not receive as much or any protection. Depending on the number of times you’ve filed during the previous year, the stay could be limited to 30 days (you filed one other matter) or might not apply at all (you filed two or more cases). If you find yourself with this problem and want the protection of the stay, you’ll have to file a motion asking the court to extend it or put it in place. The court will consider doing so if you explain why you filed the previous case and demonstrate that you aren’t gaming the system by repeatedly filing for bankruptcy. Also, it’s common for a creditor to file a motion to lift the automatic stay (a motion to remove the stay order) if, in a Chapter 13 case, you stop making your house payment and the creditor wants to move forward with a foreclosure. If the court grants the request, the judge will withdraw the stay order and allow the creditor to continue with collection efforts. Advantages of Chapter 7 BankruptcyChapter 7 bankruptcy is an efficient way to get out of debt quickly, and most people would prefer to file this chapter, if possible. Here’s how it works: Chapter 7 bankruptcy isn’t the best choice for everyone. Chapter 7 won’t help people whose debts won’t get wiped out (discharged), like certain income tax debt, student loans, and domestic support obligations. High-income filers find it hard to qualify. It’s also not a good fit for people who would lose substantial equity in a home or other property if they filed for Chapter 7 bankruptcy, or those facing foreclosure or repossession. For those individuals, Chapter 13 bankruptcy would likely be a better choice. Disposable IncomeDisposable income is the amount that remains after subtracting allowed bankruptcy expenses from your monthly gross income. Your disposable income will determine whether you qualify to discharge (wipe out) debt in Chapter 7 or Chapter 13 bankruptcy. When you claim your deductions, you’ll be able to use the actual cost of some expenses. For others, such as the allowance for food, clothing, and housing, you’ll use the national and local standards. In a Chapter 13 matter, you’ll fill out the Chapter 13 Calculation of Your Disposable Income form. The amount that remains after deducting expenses is your monthly disposable income. You’ll pay that number to your unsecured, non-priority creditors each month over the course of your three- to five-year repayment plan. Because each case is different, determining whether you qualify for bankruptcy can be challenging. When in doubt, contact a knowledgeable bankruptcy attorney. Here are a few other things filers find challenging about Chapter 13 bankruptcy: The Chapter 7 Bankruptcy ProcessYou’ll fill out several forms listing your income, assets and debt. You have to list everything, or it might not be erased and may even be considered an act of fraud. You’ll then pay a fee to file a petition for bankruptcy court and a date will be set. The petition automatically prevents creditors from garnishing your wages or suing you. Your creditors will be informed and you’ll receive a court-appointed trustee to oversee the process. After that, you will not have to pay dischargeable debt, which includes late rent and utility bills, credit cards, medical bills and documented loans from friends and family. By law, creditors cannot try to collect from the original debt. However, some non-dischargeable debts may still exist, and if creditors deem them fraudulent, you can still be approached by collection agencies. The petition creates a separate, taxable bankruptcy estate consisting of all assets that belonged to you before you filed. Your trustee is responsible for preparing and filing taxes attached to the estate, but you’re responsible for taxes not connected, such as income tax Remember, Chapter 7 stays on your credit for 10 years. The Chapter 13 Bankruptcy ProcessYou’re only required to make one monthly payment to your trustee, who will distribute the funds to the various creditors. They are paid based on priority (tax authorities, child support/alimony and administration costs). Lenders are then paid, followed by credit card companies, medical providers, utilities and more. Just like Chapter 7, you’ll fill out the same papers, pay a fee and receive a court-appointed trustee. You have to submit a plan for repayment, which the court can either accept or reject. After you have filled out a form listing your assets and income and set up a confirmation hearing, your trustee will begin making payments to your creditors based on the court-approved repayment schedule. You’ll pay back your debts from your own income, and if some survive after your bankruptcy is closed, you have to keep paying back those debts. The petition does not create a separate taxable estate, so you’ll continue to pay taxes just like you did before you filed. Difference Between Chapter 7 And Chapter 13 BankruptcyBefore you decide which type of bankruptcy is best for you, it’s important to understand the differences between the two. Requirements when Filing Chapter 7 or Chapter 13If you’re considering either Chapter 7 or Chapter 13 bankruptcy, there are certain income requirements that must be met. Anyone contemplating Chapter 7 bankruptcy must go through what’s called a means test. This will assess whether you meet the necessary conditions to qualify. The first part of the Means Test is to figure out if your income is below the median income level in the state where you reside. If it is, then you pass and are eligible for Chapter 7 bankruptcy. However, if your income is above the median level, a deeper look into your disposable income is required. If your disposable income equals more than a predetermined amount, the courts will assume you have enough money to at least pay part of your debt and you won’t pass the means test. Anyone who fails the means test will be required to file for Chapter 13 bankruptcy protection. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Can You Legally Sell Your Rental Property With Tenants In It? Can You Sell A Home In Foreclosure? Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Chapter 13 Bankruptcy Utah appeared first on Ascent Law. A foreclosure takes place when a home is seized and put up for sale by the lender. When you see a home listed as foreclosed, it means that it’s owned by the lender. Every mortgage contract has a lien on your property. A lien allows your lender to take control of your house if you stop making your mortgage payments. Foreclosures are typically the result of the homeowner being unable to keep up with their mortgage. Buying a foreclosed home is a little different from buying a house owned by a homeowner. Is the process by which a lender takes possession of a home when a homeowner fails to make their mortgage payments. It has several stages, which are important for a buyer to understand when considering a foreclosure. • Payment default and notice of default: Payment default occurs after the homeowner has missed at least one payment, and after several months of missed payments, a homeowner’s entire mortgage can default. This typically initiates the pre-foreclosure stage of the foreclosure process. A notice of default is usually sent by the lender after 90 days of missed payments. Foreclosure referral timelines will vary based on the contract agreement as well as the policies of the lender and investor in the mortgage. A homeowner is often given time to work out a new payment plan with the lender before the home is foreclosed and put up for sale. A short sale occurs when the homeowner sells a home for less than what they owe on the mortgage because the value has declined. Foreclosure has not been completed with a home up for short sale. The homeowner still owns the home so you work through their realtor. When you buy a home in a short sale, the lender (not the homeowner) needs to approve your offer. You might spend a lot of time waiting for approval. How To Buy A Foreclosed HomeThink that buying a foreclosure is right for you? Here are the steps you can take to buy a home in foreclosure: Step 1: Understand The Options For Buying A Foreclosed HomeThere are two main ways to purchase a foreclosure, at an auction or from a lender after they have failed to sell at auction. • Purchase Through Short Sale: A short sale occurs when the homeowner sells a home for less than what they owe on the mortgage because the value has declined. Foreclosure has not been completed. The homeowner still owns the home so you work through their realtor. When you buy a home in a short sale, the lender (not the homeowner) needs to approve your offer. You might spend a lot of time waiting for approval. Step 2: Hire A Real Estate AgentMost lenders hand foreclosed properties off to a Real estate owned agent who works with standard real estate agents to find a buyer. Not every real estate agent has experience working with REO agents. A qualified foreclosure agent can help you search for foreclosures, navigate your state’s REO buying process, negotiate your price, order an inspection and make an offer. Research real estate agents in your area and connect with an agent who specializes in foreclosure sales. Step 3: Find Foreclosures For SaleAlthough your real estate agent will likely be able to help you search for foreclosures, you may want to investigate for yourself as well. The internet has made it much easier than it used to be to find foreclosures in your area and in other parts of the U.S. There are now multiple different areas of the web where you can search. Step 4: Get Preapproved For A MortgageUnless you buy a home at a foreclosure auction, you’ll probably get a mortgage to fund your home purchase. Once you’ve found an agent and you get started looking at homes, you’ll want to get preapproved for a loan. A preapproval lets you know how much you can get in a home loan. Choose a lender and apply for a mortgage preapproval to narrow your search. Step 5: Get An Appraisal And InspectionInspections and appraisals are both crucial when it comes to buying a foreclosure. An appraisal is a lender requirement that lets you know how much money a property is worth. Lenders require appraisals before they offer home loans because they need to know that they aren’t lending you too much money. A home inspection is a more in-depth look at a property. An expert will walk through the home and write down everything that needs to be replaced or repaired. Because foreclosures usually have more damage than homes for sale by owner, you should insist on an inspection before buying a foreclosed home. Sometimes, you don’t get the chance to order a home inspection or appraisal before you buy. You should only consider buying these types of foreclosed properties if you’re advanced at home repair. Step 6: Purchase Your New HomeRead your inspection and appraisal results then decide if the home in question is really right for you and whether you’re okay with buying a home as-is. Contact your mortgage lender to finalize your loan if you have the money or skills to make any needed renovations. Your real estate agent will help you submit your offer and prepare you for closing. How Does Buying a Foreclosed Home Work?Foreclosure occurs when a mortgage borrower fails to keep up with their loan payments, and the lender exercises its right to seize the home and resell it to recoup (or at least reduce) their financial losses. Mortgage issuers typically put foreclosed properties up for auction, which often means selling the home for less than market value. When homes fail to sell at auction, however, lenders may slash the sales price and sell them directly. Because foreclosures are often terrific bargains, they are popular with real estate investors looking to use them as rental properties or flip them for a quick profit. Competing with these investors, many of whom have access to significant credit and can put down extra-large down payments or even purchases properties outright for cash, can be challenging for first-time homebuyers. If that means you, you’re not necessarily out of the running for a foreclosure purchase. But to compete with investors, you’ll need to lay some groundwork to document your ability to close the deal. You’ll also need to be careful and decisive about choosing a property you likely won’t have much time to size up before you make a bid. To fully understand what you may be getting into with a foreclosure purchase, it’s helpful (and sometimes essential) to work with a real estate professional with foreclosure experience. The National Association of Realtors’ Short Sale and Foreclosure Resource (SFR) certification denotes agents and with training in this specialty. It’s also crucial to understand that foreclosure typically follows a timeline, and that purchasing opportunities and procedures differ during each stage in the process. The duration of each stage in the timeline may differ according to circumstances and state or local laws, but they typically occur in this order: Benefits and Risks of Buying a Foreclosure for Your First HomeThe main benefit of purchasing a foreclosed home is savings. Depending on market conditions, you can purchase a foreclosed home for considerably less than you’d pay for comparable, non-foreclosed homes. The main risks come from the degree to which a foreclosed property can be a mystery to the buyer. Foreclosed homes are sold in “as-is” condition, and are typically unavailable for a walk-through before purchase. Foreclosures may have sat unoccupied, without heat or air conditioning, for weeks or months prior to sale, and past owners may have neglected or even vandalized them. If you succeed in purchasing a foreclosed home, you’ll likely need some cash (or available credit) to get the property to move-in condition. Do-it-yourselfers may see this as a golden opportunity for savings, but less-capable (or less ambitious) homebuyers might consider putting that repair budget toward a down payment on a more conventional purchase. Where to Find Foreclosed HousesThe following resources can help you find foreclosed properties for purchase. Real estate professionals in your area may know of additional resources. • Bank websites. Many bank websites provide lists of REO properties for sale. Steps to Take When Purchasing a Foreclosure as Your First HomeThink buying a foreclosure may be the right choice for you? Follow these steps to ensure the process goes as smoothly as possible. 1. Secure a Preapproval Letter 2. Schedule a Property Inspection 3. Conduct a Title Search 4. Consider Contract Contingencies 5. Understand the Process Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Can You Legally Sell Your Rental Property With Tenants In It? Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Can You Sell A Home In Foreclosure? appeared first on Ascent Law. If you wish to sell your property which is currently occupied with a tenant, you have two options: Sell With the TenancyWith this option, you will sell your property subject to the existing tenancy. That means your tenant will remain in the property after the sale is completed, and they will then start paying rent to the buyer. Complete Sale after Possession (i.e. Eviction)In this case, you will need to terminate the tenancy before the sale is completed, so the property is vacant/untenanted. Well, you can only imagine how much more potentially stressful the process of selling can be with a tenant in occupancy – it’s extra weight to consider during the slog. Of course, that’s not to say there aren’t advantages of doing it. Smaller MarketWith the Utah currently suffering from a major housing crisis there is certainly no shortage of buyers trampling over the tire-kickers, whether they are landlord or home-buyer. If someone likes your property enough they may even have no qualms with making an offer even if they have no intentions of being a landlord (i.e. they’ll give notice to the tenant when legally possible). But the reality is, the market for a tenanted property will appeal to a significantly smaller market, so there’s a chance it won’t shift as quickly as an unoccupied version. But that’s not to say that will always be the case, because selling a house successfully often largely intervenes with fate- the right buyer being in the market at the right time. Complications Of ViewingsYeah, taking viewings with tenants can be a right royal pain in the ass at the best of times, and the horror is only amplified if your tenant isn’t pleased with what’s happening (which wouldn’t be terribly unsurprising, and understandably so). It’s more expensive to sell when vacant. Most landlords prefer to sell their property while it’s tenanted because it’s generally cheaper. Bear in mind, if you legally repossess your property from your tenant and then try to sell, you’ll no longer benefit from rental income, which means you’ll have to dig deep into your own grubby little pockets to pay the mortgage. That can become incredibly expensive if the property remains unsold for several months. This is by far the most common incentive for selling the property while it’s tenanted. Not a bad incentive either. Condition of Your Tenant When SellingIf you’re selling a tenanted property, the odds are you’re going to attract ‘experienced landlords’ So if selling is part of your extreme and flamboyant exit-strategy to unload a rogue tenant that’s disruptive and/or in fallen into rent arrears, the truth will almost always rear its ugly little potato head. On the flip-side, a good tenant will make your proposition a hell of a lot more desirable. Point is, any serious buyer will care about the condition and quality of your tenant and selling with a rogue tenant will usually do more harm than good. You’ll have better luck shifting a property that’s subsiding at a 45 degree angle. Legally Repossessing Your PropertyIf you’ve decided that getting rid of your tenant before selling is the best move (for whatever reason), the usual rules applies, and you’ll need to legally terminate the tenancy, which may mean you’ll have to get comfy and wait several months for the process to complete. Notifying Your Tenant of the SaleIf selling with tenants in Utah, don’t be naive enough to believe you hold all the chips. The tenant is definitely sitting on the same table as the board of directors! While they may not be able to completely stop the process, they will have the ability to make the process unbearably painful or relatively painless (selling is never totally pain free). Offer Your Tenants First DibsPurely out of courtesy, even if you know they’re in no financial position to be serious contenders, you want to give your tenants the opportunity to buy the property before going to market. Explain Reasoning Before Marketing/SellingBeing abrupt in these situations can be profoundly damaging, and that includes marketing before discussing it with your tenants and/or doing it without providing an explanation. Take the time to talk to your tenants and explain why you are selling. Be ReassuringSince you have made the decision to sell with tenants in situ, you have the opportunity to spin a story which reflects the tenants best interests (even though you’re probably doing it to minimize the impact on your bank balance). Reassure the tenants and explain what your decision means: If you’re in financial distress or you can’t handle the responsibility any longer, you have a bit more urgency than if you decided this is it once your tenant’s lease ends, and you may need to sell with tenants. No matter the reason you’re selling, you can sell with or without tenants, but if you choose without, you’re at the mercy of your tenants. You’ll have to wait for their lease to expire unless you can find a way for them to leave early. Pay the Tenants to LeaveIf you want to sell the house early, you may be able to pay the tenants to leave. This depends on the cooperation of the tenants. Some tenants may be willing to leave without payment, while others may want you to help with moving costs or other costs they incur unexpectedly since they weren’t expecting to move quite yet. Sell With Tenants Occupying the PropertyIf you have cooperative tenants, you may be able to get them to help you sell the property. You need their cooperation because you’ll need access to the home to make any repairs or renovations necessary. Appraisers, real estate agents, and inspectors may also need access. If your tenants don’t mind the occasional interruption and keep the house clean and organized for potential buyers, you can use their help to sell the home while they live there. Selling Without TenantsIf you don’t have cooperative tenants or you don’t want to bother them, you can wait until their lease expires or pay the tenants to leave early. If you sell the property without tenants, you may increase your buyers pool since most buyers won’t buy a rental property for themselves. This limits your audience to real estate investors, and if you’re using a real estate agent, he or she may not have the right audience for this situation. Selling without tenants provides the opportunity to: Know Your Tenant’s RightsAll tenants have rights, as do landlords. Knowing your tenant’s rights ensures you follow the law even when you’re ready to sell the house. If you have a current lease, your tenant has the right to stay in the house for the duration of the lease unless there are terms in the lease that allow you or them to exit it with notice. If the tenant doesn’t want to end the lease, you either sell the property with the tenant in the home or pay the tenant to break the lease. If you’re thinking about selling your property with tenants, you must market to the right audience: real estate investors. Using a traditional real estate agent, you might or might not have the right audience. Sure, you may come across some investors, but you’ll have to weed your way through buyers looking for a primary residence. The Benefits of Selling a Rental Property With TenantsAt first, it may feel strange to sell a rental property with tenants. You are the landlord. Aren’t you supposed to remain the landlord for the entire lease period? While that was the intention, it’s not the case any longer, and that’s okay. It’s perfectly acceptable to sell a property with tenants, and it’s even beneficial. You Have the Right AudienceThis is important. You can market your home all you want, but if you’re looking at the wrong audience, you won’t sell the home. If you market your home with a traditional real estate agent, you may not get as many investors interested in the home. Instead, you’ll have buyers looking for a home to live in, which doesn’t fit the bill for what you’re selling. You’ll Save MoneyIt costs money to sell a house. That sounds a bit backwards, but it’s true. You’ll incur costs from the city, county, your HOA, and the real estate agent. While there’s not much you can do about your city, county, and HOA costs, you do have the option of how you sell the house. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
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